NTT creates undersea cable unit in Singapore to meet data traffic demand
SINGAPORE, NNA – Japanese telecommunications giant NTT has launched a submarine cable unit in Singapore to capitalise on the growing demand for connectivity in Southeast Asia.
NTT Ltd., the London-based firm in charge of the group’s overseas businesses, launched Orient Link Pte. Ltd. with two partners earlier this month, with plans to start laying an undersea cable in December, Hajime Miyazaki, director of the London unit, told NNA in a recent interview.
The cable to link Singapore, Southeast Asia’s leading financial center, with other Asian countries, is scheduled to start running in two years.
Orient Link was set up with a capital of $119 million together with Tokyo-backed Fund Corporation for the Overseas Development of Japan’s ICT and Postal Services Inc. and Singapore-based Wen Capital Pte. Ltd.
NTT holds a 42 percent stake in the venture, with the telecoms infrastructure fund also known as Japan ICT Fund taking a 38 percent holding and Wen Capital owning the remaining 20 percent.
The government fund, which assists Japanese telecoms firms to spread their wings overseas, plans to inject up to $78 million into Orient Link, it said in a media statement on Oct.10.
In Southeast Asia, Singapore boasts the highest number of submarine cables installed as well as data centers operated by global information technology giants, Miyazaki said.
The Singapore unit will solely undertake the upcoming cable construction to help achieve speedy decision-making, flexible fundraising and timely service launch, he added.